UK's stress-test method fails to reassure investors

The UK Financial Services Authority published information on how it conducted stress tests of Barclays, Royal Bank of Scotland and other banks. "We've published these details because there was a lot of interest around how European banks are stress-tested after the US announced theirs, and we wanted to increase transparency about our testing scenarios," said Abi Jones, a spokeswoman for the FSA. Economic scenarios used appear to have been less severe than financial markets assumed, as shares in UK banks dropped after the disclosures.

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